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Dynamic Analysis of Profit Sensitivity Based on System Dynamics

Shuliang Liu, Juanli Wang

Abstract


Profit level is an important indicator to evaluate the merits of the economic efficiency of enterprises and profit sensitivity analysis occupies a very important position in profit forecast analysis and business risk analysis. By analyzing the status of profits sensitivity methods, this paper builds system dynamic models to analyze the profit sensitivity under the condition of univariate changes, multivariate changes, interactions between variables. The results show that this method is more efficient, more intuitive. Meanwhile, it provides a new approach for sensitivity analysis, when there is an interaction between the variables.

Keywords


dynamic analysis, profit sensitivity, system dynamics.

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